HOAC Foods fully deploys Rs 9.23 crore QIP proceeds

HOAC Foods India Limited fully utilised Rs 9.23 crore of net Qualified Institutions Placement, or QIP, proceeds by September 30, 2026, according to an auditor-certified utilisation statement. Rs 7.85 crore went to working-capital requirements and Rs 1.38 crore to general corporate purposes, leaving no unutilised net proceeds.

How much of HOAC Foods' QIP proceeds remained unspent?

HOAC Foods had no unutilised net QIP proceeds as of September 30, 2026. Krishan Rakesh & Co. certified cumulative utilisation of Rs 9.23 crore and recorded a nil balance in its Annexure A certificate dated November 2, 2026.

The certificate covers the QIP completed during the half year ended September 30, 2025. HOAC Foods allotted 4,97,250 equity shares of face value Rs 10 each to eligible qualified institutional buyers on July 3, 2025, at an issue price of Rs 201 per share, including a premium of Rs 191 per share.

The July 2025 QIP raised Rs 9.99 crore before issue-related expenses, according to the financial-results note. The auditor’s annexure identifies Rs 9.23 crore as actual net proceeds received and confirms that the same amount had been used by September 30, 2026.

The auditor said it verified HOAC Foods’ books of account and relevant records to certify fund utilisation. Its certificate also states that the work was not an audit or review beyond the stated verification scope, while the recorded unutilised balance remained nil at the reporting date.

Where did HOAC Foods use the net QIP proceeds?

HOAC Foods used Rs 7.85 crore for working-capital requirements and Rs 1.38 crore for general corporate purposes by September 30, 2026. Working capital was the larger disclosed object, accounting for about 85% of the Rs 9.23 crore net proceeds.

For working capital, the amount stated in the offer document, actual amount received and actual amount utilised were each Rs 7.85 crore. For general corporate purposes, each of those figures was Rs 1.38 crore, meaning neither object had an amount pending utilisation at September 30, 2026.

The auditor’s annexure says funds not yet used had been temporarily parked in fixed deposits. A separate financial-results note says unutilised QIP proceeds were in HOAC Foods’ current account, but both disclosures report no unutilised balance as of September 30, 2026.

HOAC Foods’ consolidated balance sheet showed inventories of Rs 20.63 crore at September 30, 2026, compared with Rs 13.60 crore at March 31, 2026. Trade receivables rose to Rs 13.70 crore from Rs 8.01 crore over the same period, although the filing does not assign those balance-sheet movements directly to QIP funds.

How does QIP deployment compare with HOAC Foods' cash flow?

HOAC Foods reported Rs 8.22 crore of net cash used in operating activities for the half year ended September 30, 2026, during the period in which its cumulative QIP deployment reached Rs 9.23 crore. The cash-flow statement records working-capital movements as a principal use of cash in that half year.

Inventory movements used Rs 7.02 crore of cash and trade-receivable movements used Rs 5.69 crore in the half-year cash-flow statement. In comparison, trade payables provided Rs 2.44 crore and other current liabilities provided Rs 0.58 crore, partly offsetting the operating cash outflow.

Financing activities generated Rs 8.29 crore in the half year ended September 30, 2026, compared with Rs 10.14 crore in the year ended March 31, 2026. The half-year inflow included Rs 6.73 crore from short-term borrowings and Rs 1.94 crore from long-term borrowings.

Cash and cash equivalents declined to Rs 2.91 crore at September 30, 2026, from Rs 6.53 crore at the beginning of the half year. The filing does not state that any individual cash-flow line was funded solely by QIP proceeds, which were raised on July 3, 2025 and measured cumulatively through September 30, 2026.

Are HOAC Foods' QIP expense disclosures consistent?

HOAC Foods’ disclosures show different issue-expense figures, although the gross proceeds and certified net proceeds imply expenses of Rs 0.77 crore. The auditor’s certificate states that the difference between Rs 9.99 crore raised and Rs 9.23 crore received was due to issue-related expenses of Rs 0.77 crore.

A separate financial-results table lists Rs 0.59 crore of issue-related expenses, along with Rs 3.50 crore for working capital and Rs 1.46 crore for general corporate purposes. Its total of Rs 5.54 crore differs from the Rs 9.23 crore utilisation amount shown in the QIP net-proceeds certificate.

The consolidated cash-flow statement for the year ended March 31, 2026 records QIP expenses of Rs 0.67 crore. The supplied announcement does not reconcile the Rs 0.77 crore certificate figure, the Rs 0.67 crore cash-flow figure and the Rs 0.59 crore financial-results table figure.

The certified utilisation statement nevertheless clearly records Rs 9.23 crore of cumulative net-proceeds use and a nil unutilised balance as at September 30, 2026. The differing expense presentations affect how the gross-to-net bridge is read, but the filing does not alter the certified closing utilisation figure.

Conclusion

HOAC Foods has disclosed full use of Rs 9.23 crore in net QIP proceeds by September 30, 2026, with Rs 7.85 crore allocated to working capital and Rs 1.38 crore to general corporate purposes. The auditor-certified nil balance means no net QIP proceeds remained for deployment at that date.

What to watch next is whether HOAC Foods reconciles the Rs 0.77 crore, Rs 0.67 crore and Rs 0.59 crore issue-expense figures, and explains the separate Rs 5.54 crore utilisation table. The supplied announcement sets no further QIP deployment target because the certified net-proceeds balance was fully used by September 30, 2026.